Crypto Momentum Cooling Down

Welcome to another crypto market outlook for the 18th of August!

From BTC holding firmly around $60,000 to ETH ranging with persistent bullish pressure, and the Fear & Greed Index signaling 'Extreme Fear' throughout the week, this article covers it all.

Are you ready?

‍‍Today, we will cover the following topics:

- Market Heatmap and Fear and Greed Index
- US500, DXY and Gold Analysis
- USDT.D, Bitcoin and Ethereum Analysis
- Quotes / Advices
- Closing Remarks

Market Heatmap and Fear and Greed Index

‍After two weeks of high volatility, the market is finally cooling down, fortunately in a steady bullish manner.

BTC managed to close the week with a +0.68% gain, but it wasn’t enough for many altcoins, which still experienced a bearish week.

While BTC, ETH, and several altcoins are growing steadily, the Fear and Greed Index has continued to signal "Extreme Fear" and "Fear" throughout the week.

Are traders still expecting another leg down, or are they hesitant to buy the dip after the bloody week at the beginning of this month?

US500, DXY and Gold analysis

‍Before diving into the crypto market, it is always wise to gauge the overall market sentiment by checking international markets such as the US500 (stocks), DXY (USD index), and XAUUSD (gold).

As per our last market outlook, the US500 has rebounded from the lower bound of the rising channel in orange and has been bullish since then.

As long as the overall sentiment remains positive, we can expect the US500 to test the upper bounds of the orange and blue channels by the beginning of next week.

As expected, the US500 broke above the last major high at $5,360, allowing the bulls to take over and push the price towards the $5,500 mark.

The bulls will remain in control unless the $5,500 round number is broken to the downside.

The DXY saw little action last week as it remains stuck around the lower bound of the red symmetrical triangle.

If the $102 level is broken to the downside, further weakness for the US dollar would be expected.

For the bulls to gain momentum and shift the market in their favor, a break above the upper blue trendline and the last high at $103.55 is needed.

For now, further consolidation is expected within the $102 - $103 range next week.

Despite everything happening worldwide, gold is still recording new highs.

This week, for the first time, the $2,500 mark has been broken. Even though gold is in overbought territory, further upside is still possible.

On the 4-hour timeframe, gold has been trading within the rising blue channel recently.

For the bears to take over, a break below the lower bound of the blue channel is required. Meanwhile, gold can still continue to trade higher.

USDT.D, Bitcoin and Ethereum analysis

As per our previous market outlook, USDT.D rejected the 5.5% support zone and has remained relatively stable this week.

As long as the 5.33% support level holds, further upside is still possible, which would be negative for the crypto market.

From a medium-term perspective, it is clear that USDT.D is still bullish, trading within the rising red channel.

For the bulls to take full control and initiate the next upside movement, a break above the last high at 5.77% is needed.

As expected in our previous market overview, BTC is still holding firmly around the $60,000 level.

No major changes occurred this week, as the $60,000 level continues to shift back and forth between resistance and support.

Here are the possible scenarios:

For the bulls to take over, a break above the upper orange trendline and the previous major high at $62,800 is needed.

Meanwhile, BTC remains bearish, especially if the $58,000 level is broken to the downside.

Just like BTC and USDT.D, ETH has been uneventful, trading within a narrow range above $2,500.

As mentioned previously, as long as the $2,500 level holds, the bulls will remain in control from a medium-term perspective, with a potential correction phase toward the upper bound of the falling wedge pattern in red.

As ETH approaches the $2,400 - $2,500 range, it becomes an attractive zone to look for short-term long opportunities.

Meanwhile, a movement toward the $2,900 supply zone would be expected.

Quotes / Advices

‍Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble.
~ Warren Buffett

Closing Remarks

‍In summary, BTC closed the week with a modest gain of +0.68%. However, many altcoins still experienced a bearish week, and the Fear and Greed Index continued to signal "Extreme Fear" and "Fear."

US500 has rebounded and is testing key levels, while the DXY remains stagnant within a symmetrical triangle.

Gold has reached new highs, breaking the $2,500 mark, though it remains in overbought territory.

USDT.D has held its support levels, indicating potential downside risk for the crypto market if it continues to rise.

ETH, in particular, is approaching an attractive zone for short-term long opportunities, with a potential move toward the $2,900 supply zone.